As the domestic stock market continues to rise sharply, driven by semiconductor stocks, retail investor funds are rapidly flowing into the exchange-traded fund (ETF) market. Following the KOSPI's historic breach of the 7,000 mark, expectations for the '8,000 KOSPI' have grown, with nearly 100 ETFs surpassing 1 trillion won in total assets under management (AUM).
According to the Korea Exchange on May 14, the number of ETFs with AUM exceeding 1 trillion won reached 96 as of the previous day's closing. This represents about 8.7% of the total 1,107 ETFs listed in South Korea.
The number of ETFs exceeding 1 trillion won was only 67 at the end of last year, but it has increased by 29 in just five months, indicating rapid growth. Market analysts attribute this surge to the influx of retail investor funds into the ETF market amid the recent rise in the domestic stock market.
The most notable growth has been seen in domestic equity ETFs. Of the 96 ETFs, 43 are focused on investing in companies listed on the Korean stock market, accounting for approximately 44.8% of the total. In contrast, overseas equity ETFs remain limited to around 21.
At the end of last year, the number of ETFs with AUM over 1 trillion won was nearly equal between domestic (23) and overseas (18) equity ETFs. However, this year, as the domestic stock market rally centered on semiconductor and large technology stocks continues, 20 new domestic equity ETFs have surpassed the 1 trillion won mark. This shift is interpreted as a movement of investment funds towards the domestic ETF market due to the relatively superior returns of the Korean stock market compared to overseas markets.
The overall size of the ETF market is also expanding rapidly. The number of listed ETFs has increased from 1,058 at the end of last year to 1,107 currently. The total AUM has surged as well, with the ETF market recently surpassing 450 trillion won and expanding to 471.66 trillion won as of the previous day.
Notably, the total AUM of ETFs increased by over 78 trillion won in about a month, rising from 393.33 trillion won on April 13. This represents an increase rate of approximately 19.9%. The simultaneous strength of the stock market, particularly in the semiconductor sector, and the large influx of retail investor funds have accelerated the expansion of the ETF market. Industry experts suggest that if the current trend of fund inflows continues, the domestic ETF market could surpass 500 trillion won by the end of the first half of the year.
* This article has been translated by AI.
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